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Self-Assessment Quiz


This activity contains 10 questions.

Question 1
1 Under the needs approach of determining the amount of life insurance to purchase, one consideration is providing income to the surviving spouse and children during the one- or two-year period following the breadwinner’s death. This period is called the
 
End of Question 1


Question 2
2 Which of the following statements is (are) true with respect to the human life value approach?

  1. The human life value approach considers all sources of income that the family receives.
  2. The human life value approach does not consider the time value of money--future cash flows are not discounted back to present value.
 
End of Question 2


Question 3
3 Bob and Tonya are supporting their children, ages 4 and 2. Bob’s father is also financially dependent upon Bob and Tonya. This type of family is called a(n)
 
End of Question 3


Question 4
4 From an economic perspective, “premature death” is defined as
 
End of Question 4


Question 5
5 Some term insurance policies permit the policyowner to exchange the policy for a cash value policy without having to demonstrate insurability. Such term insurance policies are described as
 
End of Question 5


Question 6
6 All of the following are characteristics of variable life insurance EXCEPT
 
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Question 7
7 Lynn, age 32, would like to purchase permanent life insurance. She is concerned that premiums may become a burden after she retires. Given her coverage preferences, which of the following life insurance policies is the best policy for Lynn to purchase?
 
End of Question 7


Question 8
8 Which of the following statements is (are) true with respect to universal life insurance?

  1. Universal life insurance provides premium payment flexibility for the policyowner.
  2. Universal life insurance permits the policyowner to select where the cash value is invested.
 
End of Question 8


Question 9
9 All of the following life insurance policies develop a cash value EXCEPT
 
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Question 10
10 One type of life insurance is a nonparticipating whole life policy in which cash values are based on the insurer's present mortality, investment, and expense experience. An accumulation account is used to reflect the cash value of the policy, and a fixed death benefit and maximum premium level are stated at the time the policy is issued. This type of life insurance is called
 
End of Question 10





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